Why JA Solar Holdings Co., Ld. (JASO), Ascena Retail Group Inc. (ASNA) and Endo International plc (ENDP) Are 3 of Today’s Worst Stocks

The bulls got the new week started on an even more bullish foot than they ended last week on, as the S&P 500 gained another 0.3%. The close at 2,129.20 took the large cap index decidedly into new-high — and record-high — territory.

It wasn’t a banner day for all stocks, however. Endo International plc (NASDAQ:ENDP), Ascena Retail Group Inc. (NASDAQ:ASNA) and JA Solar Holdings Co., Ltd. (NASDAQ:JASO) were all deep in the red on Monday. Here’s what happened to each.

JA Solar Holdings (JASO)

Why JA Solar Holdings Co., Ltd. (JASO), Ascena Retail Group Inc. (ASNA) and Endo International plc (ENDP) Are 3 of Today's Worst StocksThe good news: JA Solar Holdings topped its earnings estimates for last quarter. The bad news: It failed to live up to revenue expectations in the first quarter of 2015. The market opted to see the glass as half-empty rather than half-full, sending JASO shares down nearly 6%.

Last quarter, JA Solar Holdings earned 13 cents per share, versus analyst forecasts for a profit of six cents per share of JASO stock. Revenue of $387.7 million, however, fell well short of the expected top line of $410 million.

Low energy commodity prices (like oil, natural gas, and coal) have crimped demand for solar panels. Shipments of panels fell 3.1% in Q1. But, JA Solar Holdings expects demand to perk up again in the second half of 2015.

Endo International (ENDP)

Pharmaceutical company Endo International is doing its part to prolong a wave of M&A within the industry. Judging from the 5% drop ENDP doled out today, though, investors aren’t impressed.

The mostly-cash deal brings Par Pharmaceuticals into the Endo fold, costing $8.05 billion, and creating a company that will be one of the United States’ top-five generic drug giants by adding Par’s $1.3 billion worth of revenue to Endo International’s top line.

Though touted by Endo International and analysts as a good fit, ENDP investors may silently be wondering if Endo is overpaying just to do a deal — any deal — after being outbid by Valeant Pharmaceuticals (NYSE:VRX) for Salix in March.

Ascena Retail Group (ASNA)

Speaking of deals the market isn’t thrilled about, retail store operator Ascena Retail Group saw its stock fall a full percentage point on Monday following news that it would be acquiring Ann Inc. (NYSE:ANN) — as in Ann Taylor stores — to the tune of $2.16 billion.

Ascena Retail Group, which operates DressBarn and Lane Bryant, will add $2.5 billion to its annual top line with the union, based on last year’s results from Ann. The Ann Taylor parent company also earned $68 million on that $2.5 billion in sales in 2014. It’s not a lot, though it was an off-year for Ann. The company had earned well over $100 million per year in the two years prior to last year.

Either way, ASNA believes it can generate a cost-savings of $150 million per year by combining the two companies. Investors, however, seem to be more concerned this is going to be an expensive deal, a misfit, or both.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/05/ja-solar-ascena-endo-worst-stocks/.

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